Childcare grants are on its way to childcare businesses. Are you ready to apply for it?
Under the American Rescue Plan, each state and territory has been given funding for grants to help childcare providers remain open and support the majority of working parents as they go back to their jobs.
In this blog, we give you the basics about Child Care Stabilization Grants to help your childcare business thrive once again.
What is a Child Care Stabilization Grant?
A Child Care Stabilization Grant is a grant created under the American Rescue Plan to help childcare providers with their pandemic-related expenses. The hope is that the grant will help childcare providers offset the increase of any operating cost due to the pandemic and ease some of their financial burden.
Who is eligible for a childcare grant?
Child care center owners and family daycare providers who have been licensed or registered in their state or territory on or before March 11, 2021 are all eligible to apply for the grant.
States and territories will also have their own eligibility requirements for you to qualify to apply.
What do you need to apply for a childcare grant?
Most states and territories will implement their own set of documentary requirements. But the most common requirements would be your license or registration number as a daycare owner or child care provider; tax ID or social security number; and application form.
How much grant can a family daycare provider receive?
This will depend on your estimated business’ pandemic-related expenses.
Where can you use the grant?
The Child Care Stabilization Grant was created to help child care providers offset the increase of operational costs. The grants for childcare providers may be used for the following expenses:
- Payroll and benefits
- Rent or mortgage payments, utilities, facility improvements, or insurance
- Personal protective equipment, cleaning and sanitation supplies and services, or training and professional development related to health and safety practices
- Purchases of, or upgrades of, equipment and supplies to respond to COVID-19
- Goods and services needed for child care services
- Mental health support for children and employees
As a child care provider, you are encouraged to show your recent expenses through payroll reports and receipts that will help you estimate how much grant you need.
It could also be helpful in budgeting portions of your grant to determine where the grant would be most helpful to you.
Until when will the Child Care Stabilization Grants be available?
The grants for childcare providers will be available until September 30, 2023.
Will the childcare grants be taxed as income?
It is uncertain whether childcare grants will be considered income. As implementation may vary, it is best to ask your local authorities when you apply for the grant.
Which states and territories have opened their application portal for the grants?
States and territories with available and open childcare grants applications. (as of September 7, 2021)
As of writing, 14 states and 1 territory have officially started accepting grant applications with more of the states to follow.
The stabilization grants for childcare providers were created to help these vital businesses overcome the increased costs of operating child care centers despite the pandemic restrictions. With the funding lasting until September 2023, this grant will certainly be instrumental in strengthening the childcare infrastructure that’s the foundation for a secure and stable workforce.
If you want to know more about available financial help for childcare providers, read American Families Plan: What’s in it for Child Care Providers?
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